As far as the legal and political aspects are concerned, the entire movie market is affected by the risk of piracy which could potentially bring about an unfavorable influence on the general earnings of the movie market. Having stated that, copyright laws offer defense to the film industry in terms of dissuading piracy.
While the political and legal environment provides security to film makers, globalization and improvement of technological factors have actually increased legal obstacles such as ease of piracy and breaking intellectual property rights.
It must be kept in mind that motion pictures become part of the entertainment industry while expenditure on any type of home entertainment is generally an optional expense which is more or a luxury instead of a necessity. However, we look at the contrast of the GDP trend with the pattern in demand for movies, we can see that the two are not directly proportional suggesting that any change in GDP growth does not necessarily bring about a change in this particular home entertainment.
As far as the social-cultural elements are concerned, it needs to be kept in mind that the 70% of IMAX viewers are in between the ages of 19 and 56 which permits a great deal of diversity when it comes to opting for a specific section. Furthermore with bulk of the audiences being college or university students with a typical home income of $70,000, the purchasing power of the target market shows possibilities of increasing viewership.
With elements such as 'moms and dads showing an interest in their kids's choice of home entertainment' and 'higher purchasing power in families' due to both parents contributing towards the household earnings, we can see that the entertainment company has a great deal of capacity for market players.
While technological aspects have contributed towards decreasing the cost of entertainment with the introduction of multimedia, reality based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in term of making the theatre experience richer for consumers in order to make it more attractive than viewing movies at home. In addition, while innovations have contributed towards the risk of 'piracy' they have actually likewise contributed towards ease of keeping and distributing films.